Kenya in a bid to cut neighboring Tanzania dominance is in the process of constructing the biggest import and storage LPG facility in the coast.
This idea comes a few days after Kenya banned gas imports from Tanzania through Namanga boarder citing massive irregularities by businesses involved.
The 25,000 tones storage facility will connect to the Sh42 billion new Kipevu Oil Terminal (KOT) 2 at Mombasa port.
The Kenya Pipeline Authority (KPC) has already contracted a Pakistan firm to draw the LPG Facility.
The facility will help in easy offloading of the LPG gas as well as in transportation of the commodity which is projected to lower gas cost in the country.
“KPC proposes to install, commission and operate a 500 tonnes per day LPG truck loading facility which will enhance product evacuation and as such ease ullage constraints and subsequently reduce demurrage costs,” read part of the tender document.